The FTX bankrupt exchange challenged the sale of FTX European, its European subsidiary. This crypto platform was founded by ex-FTX staff.
FTX confirmed in a statement dated Jan. 8, that FTX Europe AG, its wholly owned subsidiary, is the sole owner of FTX Europe. In a statement dated Jan. 8, FTX clarified that its subsidiary FTX Europe AG owns FTX Europe in full.
FTX also clarified that the United States Bankruptcy Court for the District of Delaware did not approve Backpack’s acquisition of FTX EU.
Earlier agreements under the court’s supervision allowed the FTX Debtors to sell FTX EU to former FTX Europe insiders as part of a settlement.
However, the bankrupt exchange claimed that these insiders arranged an indirect transfer of FTX EU to Backpack without the company’s or the court’s prior knowledge.
Asset Recovery FTX – EU
FTX distanced themselves further from any link between Backpack or the ongoing asset recoveries for its global creditors.
According to FTX, Backpack would not return funds to customers or creditors under the US Bankruptcy Court’s jurisdiction. FTX EU will be responsible for resolving any debts owed by its customers.
The statement highlighted that the firm would handle customer claims related to FTX EU exclusively after the subsidiary’s sale was finalized. The bankruptcy exchange stated that it is not responsible for settling customer claims or managing the funds of FTX EU.
Furthermore, FTX disclaimed any association with Backpack’s recent communications, including its website and press releases about asset recovery. The company has stressed that Backpack’s information was not vetted or approved by the firm.
Backpack’s stance
Backpack replied that its acquisition of FTX Europe was completed legally and according to regulatory guidelines.
Backpack’s CEO Armani Ferrante stated that the transaction involved FTX EU’s founders and was cleared by the Cyprus Securities and Exchange Commission after a year-long review process. Ferrante stressed that the purchase did not include the bankruptcy estate.
According to him
“FTX EU was sold to its original founders and approved by the bankruptcy court, free and clear. Backpack bought the company not from the estate, but from the FTX EU founders.”
Ferrante reiterated that FTX EU’s obligations to its former customers are now solely managed by Backpack.
He also confirmed that his exchange is not involved in FTX’s ongoing bankruptcy proceedings and will not handle fund distributions for international FTX customers.
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